The AT&T and T-Mobile merger deal is officially dead. After months of seeking FCC approval and facing several road blocks, including a lawsuit from the DOJ, AT&T has finally succumbed to defeat and issued a statement today announcing that it is dropping its proposed bid to takeover T-Mobile for $39 billion.
According to the Wall Street Journal, the antitrust lawsuit against AT&T's T-Mobile merger may be either postponed or withdrawn by the Department of Justice sometime next week. DOJ lawyer Joseph Wayland explained that the expedited court proceedings were no longer needed since AT&T had withdrawn its merger application from the FCC. But this isn't necessarily good news for AT&T.
Judging from all the rumors, it seems like that AT&T is looking at all of its remaining options in light of its withdrawn attempt to acquire T-Mobile USA from parent company Deutsche Telekom AG. Wall Street Journal gives us the latest possible scenario, which is the possibility of AT&T and Deutsche Telekom teaming up together for a joint venture should the acquisition deal ultimately fall apart. And this would be apparently be a partnership that would entail the two telecom giants pooling their infrastructure together.
During a conference call today, the FCC announced that it will accept AT&T's request to withdraw its application for the T-Mobile merger. The agency also revealed that it will be releasing findings today of what it uncovered from reviewing the merger application, but some portions will be redacted.
One of the tricks that some analysts are saying AT&T might be able to use to revive its dying deal to purchase T-Mobile is to agree to sell off more of the T-Mobile assets to other carriers. The catch is that the sell off would need to be made to a smaller carrier according to some rather than to Verizon. AT&T has apparently decided to try that tactic.
AT&T's bid to purchase T-Mobile for $39 billion has collapsed following reports that the FCC was requesting an administrative hearing regarding the deal. In a pre-emptive move, AT&T withdrew its T-Mobile proposal from the FCC and added the $4 billion breakup charge to its Q4 2011 finances. However, a source from Bloomberg is now claiming that AT&T may be considering one last plea of offering to sell more assets to save the T-Mobile deal.
AT&T's bid to purchase T-Mobile for $39 billion is facing another setback. The deal is already being challenged by the Justice Department, which has filed a lawsuit against the merger back in August. And now, according to the WSJ, the FCC is requesting an administrative hearing on the proposed deal. It's rare for the FCC to do this and it's not a good sign for AT&T and T-Mobile.
Back during the summer, Google decided that it has the OS wrapped up with Android and wanted to add hardware maker to its bag of tricks. That meant that the search giant went looking for a mobile device maker to gobble up. Google ended up going with Motorola and offered to buy the mobility side from Motorola for $12.5 billion.
The Kobo e-reader, which currently competes with Amazon's Kindle and the Barnes & Noble Nook, may be getting a boost soon with new backing from Japan's version of Amazon, a large e-commerce operator called Rakuten. The Japanese company is purchasing Kobo for $315 million and intends to rapidly grow its user base around the world.